Under Armour Revenue Growth Continues

Under Armour Inc.'s revenue continued to surge in the latest quarter, as the apparel maker posted double-digit sales gains in all three of its segments, especially footwear.

The Baltimore-based company has benefited from the success of its endorsed athletes. In the quarter reported Tuesday, its Stephen Curry basketball line helped footwear sales surge 58% to $242.7 million from a year ago.

Apparel sales, meanwhile, climbed 19% to $613 million, again led by growth in training and golf. Accessories sales rose 21% to $83 million, driven mostly by headwear and bags.

And while more than three-quarters of the company's revenue is North America-based, foreign revenue increased 68%.

For the quarter, the company posted a loss of $52.7 million, or 12 cents a share, compared with a year-earlier profit of $14.8 million, or 3 cents a share, reflecting the impact of a $59 million stock dividend paid to Class C shareholders during the quarter.

Results also included a previously reported $23 million impairment charge related to the liquidation of Sports Authority. The company booked an impairment charge of $32 million in the prior-year period.

Revenue increased 28% to $1 billion, in line with analysts' expectations.

Gross margin slipped to 47.7% from 48.4% a year ago. The company backed its 2016 revenue forecast—which it had lowered in May—for $4.93 billion.

Shares, which have risen 4.7% this year, slipped 2.4% premarket.

Write to Anne Steele at [e-mail]

(END) Dow Jones Newswires

July 26, 2016 09:05 ET (13:05 GMT)

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